The unprecedented plunge of the shares of HSBC and Standard Chartered on the Hong Kong Stock Exchange has pushed the exchange to lead losses in the Asian region.
Renowned international banks including the Hong Kong-based arms of HSBC Holding Plc (HKG: 0005), Standard Chartered Plc (HKG: 2888), and others have been indicted on allegations of helping to move large sums of money over the course of about two decades. As reported by CNBC, the money laundering allegations have caused a plunge in the shares of HSBC and Standard Chartered trading on the Hong Kong Stock Exchange.
At the prime of trading hours on Monday, shares of Standard Chartered plummeted 6.18%. HSBC also plunged 5.33% to lows not seen in more than 25-years, according to FactSet. By the end of trading on Monday, HSBC stock slipped 2.05% lower while Standard Chartered shares plunged 2.58% to close at HKD34.
The news bearing the money laundering report, which was widely circulated in the media, contained pieces of evidence submitted by the banks to the United States government. “We do not comment on suspicious activity reporting,” HSBC said in a statement to CNBC. “Since 2012, HSBC has embarked on a multi-year journey to overhaul its ability to combat financial crime across more than 60 jurisdictions.”
“The reality is that there will always be attempts to launder money and evade sanctions; the responsibility of banks is to build effective screening and monitoring programmes to protect the global financial system.” Standard Chartered said in a statement. “We take our responsibility to fight financial crime extremely seriously and have invested substantially in our compliance programmes,” added the bank.
HSBC, Standard Chartered Helped Push the HKSE to Lead Regional Losses
The unprecedented plunge of the shares of HSBC and Standard Chartered on the Hong Kong Stock Exchange has pushed the stock exchange to lead losses in the Asian region. Per the CNBC update, Hong Kong’s Hang Seng index leading losses, falling 2.06% to close at 23,950.69.
The stocks on mainland China were unable to help cushion the losses in Hong Kong as the stocks also traded lower. While the Shanghai Composite plunged by 0.63% to about 3,316.94, the Shenzhen component recorded a 0.722% loss to close around 13,149.50. Despite these recorded losses, China’s benchmark lending rates, the one-year and five-year Loan Prime Rate (LPR), on Monday were kept unchanged. While the one-year lending rate remained at 3.85%, the five-year lending rate remains hinged at 4.65%, respectively.
While Japanese markets remain closed on Monday’s trading day in commemoration of the Respect for the aged public holiday, South Korea’s Kospi slipped 0.95% to close at 2,389.39. Over in Australia, the S&P/ASX 200 lost 0.71% to close its trading day at 5,822.60.
Following the money laundering allegations from HSBC, Standard Chartered, and the others involved, the authorities are expected to push for a fine, as Amber Hill Capital’s Jackson Wong told CNBC. The analyst noted that the fines will be more for HSBC and that the U.S. authorities will not let litigations of this nature slip by.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.